Rifts, debt tear at Crystal Cathedral

The glass panes of the landmark Crystal Cathedral in Garden Grove, Calif. reflect the rain clouds of a storm that hit Orange County. Crystal Catherdral Crystal Cathedral Ministries, the megachurch founded by television evangelist Robert H. Schuller, filed for Chapter 11 bankruptcy Monday.The cathedral owes about about $7.5 million to unsecured creditors. The bankruptcy filing seeks court protection from its creditors. Pictured, from left, The Tower Chapel, the Crystal Catherdral, and back right, the 236-foot bell tower and spire named the Crean Tower honoring John and Donna Crean who's contributions helped to begin construction in 1988. LEONARD ORTIZ, THE ORANGE COUNTY REGISTER

VIDEO: Crystal Cathedral founder's son and grandson speak out

&amp;amp;nbsp;&amp;amp;nbsp;&amp;amp;lt;p&amp;amp;gt;Your browser does not support iframes.&amp;amp;lt;/p&amp;amp;gt;

Graphics

GARDEN GROVE – Robert Harold Schuller's ministry began on the sticky tar paper roof of a snack bar in the Orange drive-in theater on Sunday, March 27, 1955.

Choir member Anne Waltz, 25 years old at the time, remembers getting on the roof with Schuller and his wife, Arvella, who played the organ, which was also hoisted up there. The members of this first-ever drive-in church listened to the bellowing voice of their pastor through movie loudspeakers hooked on to their car windows.

"I knew then that I was in the midst of something very special," Waltz says. "It was an exciting and inspiring time."

The owner of the drive-in let the 28-year-old pastor rent the snack shack on Sundays for $10.

Less than 25 years after his first sermon at the drive-in, Schuller built a $16 million glass and steel architectural masterpiece – the Crystal Cathedral — that soon became one of Orange County's top tourist attractions. By 2005, he was the head of a large congregation with an $80 million budget. By comparison, the city of Garden Grove, where the church stands, currently has an annual operating budget of about $90 million.

The church's"Hour of Power" television show attracted 1 million viewers nationwide and millions more around the world. The "Glory of Christmas" and "Glory of Easter" pageants, featuring elaborate sets, live animals and flying angels, drew thousands each year to the cathedral. At its peak, the church had 10,000 congregants in Orange County and millions nationwide and around the world. It was sought after by such celebrities as John Wayne, Andy Griffith, pianist Roger Williams, and Evel Knievel.

But on Monday, the Cathedral filed for Chapter 11 bankruptcy. In addition to its financial travails, the church is faced with a crisis spurred by a rift between its founder and his son, who was meant to succeed his illustrious father. Robert A. Schuller's departure prompted some in the congregation to leave, causing a further drop in donations and revenue. The Cathedral is also struggling to find an inspirational leader to replace its aging leader in the pulpit and make itself attractive to younger church-goers.

However, the church will first have to dig itself out of a considerable financial mess. The Cathedral has a $36 million mortgage to pay off and a total debt of $48 million. About $7.5 million of that debt is to unsecured creditors – a majority of them vendors and laborers whose bills have gone unpaid.

The church has sold several assets, cut about 150 of its staff members and slashed air time by 50 percent. Its congregation has shrunk to about 5,000. According to bankruptcy filings, donations fell by 24 percent in 2009. The church, at this point, owes money to about 550 creditors. The Cathedral lost $16.8 million over three years on total revenues of $70.8 million.

The mortgage includes the cost of two more buildings on campus – the Family Life Center and Welcoming Center – which were added in 1990 and 2003 respectively. The mortgage also covers the cost of other refurbishments on campus and parking lot expansion as well as funds to acquire neighboring properties, said Jim Penner, teaching pastor and Robert H. Schuller's son-in-law.

For the last two years, the church has tried to refinance its mortgage to a manageable level, but has not been successful. Penner said the 10-acre property in Garden Grove is valued between $55 million and $60 million.

The bankruptcy was the direct result of the Cathedral not having sufficient liquid cash flow to pay off the vendors, Penner said. Most of the church's money is tied up in assets, he said.

Church administrators, predominantly the daughters and sons-in-law of the founding pastor, who is now 84, have said the bankruptcy is a direct result of the tough economic conditions.

The glass panes of the landmark Crystal Cathedral in Garden Grove, Calif. reflect the rain clouds of a storm that hit Orange County. Crystal Catherdral Crystal Cathedral Ministries, the megachurch founded by television evangelist Robert H. Schuller, filed for Chapter 11 bankruptcy Monday.The cathedral owes about about $7.5 million to unsecured creditors. The bankruptcy filing seeks court protection from its creditors. Pictured, from left, The Tower Chapel, the Crystal Catherdral, and back right, the 236-foot bell tower and spire named the Crean Tower honoring John and Donna Crean who's contributions helped to begin construction in 1988. LEONARD ORTIZ, THE ORANGE COUNTY REGISTER
Robert A. Schuller, right, comforts his emotional father after Robert H. Schuller announced his retirement from the pulpit Jan. 1, 2006. Some say the rift between the two led to the crisis the church is facing. BRUCE CHAMBERS, FILE PHOTO: BRUCE CHAMBERS, THE ORANGE COUNTY REGISTER
Dr. Robert A. Schuller hugs his father Robert H. Schuller as his wife Donna Schuller and his mother Arvella Schuller look on after he was declared to be new senior pastor during the celebration service for the installation of Robert A. Schuller as senior pastor at Crystal Cathedral. SANG H. PARK, SANG H. PARK
Ann Waltz, here in her Anaheim Hills home, was one of the first members of Robert H. Schuller's ministry. She was a choir member who stood with Schuller on the roof of the snack bar at the Orange Drive-in. . BRUCE CHAMBERS, THE ORANGE COUNTY REGISTER
The glass panes of the landmark Crystal Cathedral in Garden Grove reflect the rain clouds of a storm that hit Orange County. Crystal Cathedral Ministries, the megachurch founded by television evangelist Robert H. Schuller, filed for Chapter 11 bankruptcy Monday. The cathedral owes about about $7.5 million to unsecured creditors. The bankruptcy filing seeks court protection from its creditors. At right is the 236-foot bell tower and spire named the Crean Tower honoring John and Donna Crean who's contributions helped to begin construction in 1988. LEONARD ORTIZ, THE ORANGE COUNTY REGISTER
The sun rises dramatically over the Crystal Cathedral's bell tower in Garden Grove. A plane out of John Wayne airport passes by. BRUCE CHAMBERS, THE ORANGE COUNTY REGISTER
Reverend Robert Schuller at drive-in movie February 1, 1978. FILE PHOTO, THE ORANGE COUNTY REGISTER
In 1975, Archbishop Philip Johnson, left, and John Burgee, right, show off their model of the first "all glass church" for Robert Schuller. Schuller's unsolicited response was, "Wow! It looks like a crystal cathedral!" The name stuck. He continued, " It must be built. If it takes ten years off my life to give leadership to this achievement, it's a price worth paying. People must note be deprived of this treasure." FROM THE CRYSTAL CATHEDRAL BOOK, "A PLACE OF BEAUTY, A JOY FOREVER"
Dr. Peale and Dr. Schuller, right, break ground on the Tower of Hope. FROM THE CRYSTAL CATHEDRAL BOOK, "A PLACE OF BEAUTY, A JOY FOREVER"
Dr. Schuller communicates his principles for successful church leadership to pastors and lay leaders at a 1969 session of his Church Institute. Meetings like this one are often credited for inspiring the "mega church-movement." FROM THE CRYSTAL CATHEDRAL BOOK, "A PLACE OF BEAUTY, A JOY FOREVER"
The white skeletal steel space frame is hoisted and bolted into place a section at a time in 1978. FROM THE CRYSTAL CATHEDRAL BOOK, "A PLACE OF BEAUTY, A JOY FOREVER"
In this 1977 photo, a few days after groundbreaking ceremonies, earth movers and other heavy equipment began to dig the hole where the Crystal Cathedral would stand. The concourse level below the Cathedral would house all music ministry staff and technical support personnel. FROM THE CRYSTAL CATHEDRAL BOOK, "A PLACE OF BEAUTY, A JOY FOREVER"
Richard Neutra's Tower of Hope under construction. in 1968 The 90-foot neon-illuminated cross is being hoisted into position. FROM THE CRYSTAL CATHEDRAL BOOK, "A PLACE OF BEAUTY, A JOY FOREVER"
An early 1970s "Hour of Power" production under the leadership of Arvella Schuller, left. PHOTO COURTESY: THE CRYSTAL CATHEDRAL
On Tuesday, May 25, 1990, two cranes working an tandem hoisted the entire carillon assembly, weighing 50, 000 pounds, 80 feet up, where it was set on top of the waiting steel space-frame structure. The prism-shaped mirror-like stainless panels will attach to the same structural framework. PHOTO COURTESY: THE CRYSTAL CATHEDRAL
Dr. and Mrs. Schuller stand in front of the eastern tip of the completed Crystal Cathedral in 1980. FROM THE CRYSTAL CATHEDRAL BOOK, "A PLACE OF BEAUTY, A JOY FOREVER"
Mikhail Gorbachev, visits Dr. Schuller atop the pulpit during services. in 1989. FROM THE CRYSTAL CATHEDRAL BOOK, "A PLACE OF BEAUTY, A JOY FOREVER"
The glass panes of the landmark Crystal Cathedral in Garden Grove, Calif. reflect the rain clouds of a storm that hit Orange County. Crystal Catherdral Crystal Cathedral Ministries, the megachurch founded by television evangelist Robert H. Schuller, filed for Chapter 11 bankruptcy Monday.The cathedral owes about about $7.5 million to unsecured creditors. The bankruptcy filing seeks court protection from its creditors. Pictured, from left, The Tower Chapel, the Crystal Catherdral, Pictured, from left, The Tower Chapel, the Crystal Catherdral, and 236-foot bell tower and spire named the Crean Tower honoring John and Donna Crean who's contributions helped to begin construction in 1988. LEONARD ORTIZ, THE ORANGE COUNTY REGISTER
Dr. and Mrs. Schuller in Red Square in 1989. They flew directly into the Soviet Union with friend Armand Hammer to deliver a televised message of hope over government-owned Channel 1, Gostel Network. This message was available in every Soviet home with a TV set - and was heard by over 200 million people. PHOTO COURTESY: THE CRYSTAL CATHEDRAL
America's first televised pastor, Archbishop Fulton Sheen, left, started using television in the early 1950's. He is seen here on the pulpit of the Garden Grove Community Church. His message was televised on "Hour of Power." (1972) PHOTO COURTESY: THE CRYSTAL CATHEDRAL
The floating patio - a small patio area that seems to float on a reflective pool immediately adjacent to the Tower of Hope. (Date unknown) FROM THE CRYSTAL CATHEDRAL BOOK, "A PLACE OF BEAUTY, A JOY FOREVER"
Dr. Henry Beltman, the brother of Dr. Schuller's mother, proclaimed that the young Schuller would be a pastor when he grew up. PHOTO COURTESY: THE CRYSTAL CATHEDRAL
Young boys on their way home from school pause on the lawn of the Garden Grove Community Church. Notice how you can see all the way through the sanctuary's 30-foot-tall walls. (1969) PHOTO COURTESY: THE CRYSTAL CATHEDRAL
Dr. Schuller's study and conference room on the 12th floor of the Tower of Hope. (Date unknown) FROM THE CRYSTAL CATHEDRAL BOOK, "A PLACE OF BEAUTY, A JOY FOREVER"
The pink and orange hues of sunrise are reflected in the mirrored surfaces of the Crystal Cathedral's bell tower in Garden Grove. BRUCE CHAMBERS, THE ORANGE COUNTY REGISTER
The owners of Crystal Cathedral in Garden Grove filed for bankruptcy on Monday. Revenues are down due to the recession, Sheila Schuller Coleman, senior pastor, said. ROSE PALMISANO, THE ORANGE COUNTY REGISTER
Robert Schuller in front of the Crystal Cathedral in this December 1980 photo. FILE PHOTO, THE ORANGE COUNTY REGISTER
Robert Schuller at the Crystal Cathedral. FILE PHOTO, THE ORANGE COUNTY REGISTER
Rev Robert H. Schuller. Crystal Cathedral. FILE PHOTO, THE ORANGE COUNTY REGISTER
Reverend Robert H. Schuller looks up at the giant bells before they were hoisted into place on May 25, 1990 at the Crystal Cathedral. CLAY MILLER, THE ORANGE COUNTY REGISTER
Robert Schuller Jr. stands in-front of the Crystal Cathedral in 1981. FILE PHOTO, THE ORANGE COUNTY REGISTER
Dallas Anderson unveils the statue of Job that he sculpted out of white Vermont marble as Robert H. Schuller, far left, and Herman J. Ridder, center, watch with the Crystal Cathedral congregation on the church grounds in Garden Grove in this 1983 photo. FILE, THE ORANGE COUNTY REGISTER
The Bell Tower, left, is reflected on the glass of the Crystal Cathedral in Garden Grove. MARK RIGHTMIRE, THE ORANGE COUNTY REGISTER
Kristina Oliver with her daughter, Jade. Oliver supplied camels, horses and sheep for the Crystal Cathedral's "Glory of Christmas." Oliver is still owed $56,000 by the church. She was part of a creditors' committee for six months that worked with the Cathedral to come up with a payment plan. But, Oliver says, it has not been successful and that church administrators say they cannot pay anyone at this time. MICHAEL GOULDING, THE ORANGE COUNTY REGISTER/TEXT BY DEEPA BHARATH
A shepherd boy comes to see the baby Jesus in The Glory of Christmas at the Crystal Cathedral in 2008. The cathedral, which filed for bankruptcy Monday, is known for the elaborate holiday event. FILE PHOTO: THE ORANGE COUNTY REGISTER
An angel flies through the air in The Glory of Christmas at the Crystal Cathedral. MARK MARTINEZ, THE ORANGE COUNTY REGISTER
Ann Waltz was one of the first members of Robert H. Schuller's ministry. In her Anaheim Hills home she a number of eagle statues that were gifts from Schuller in return for donations she made to the ministries of the Crystal Cathedral. BRUCE CHAMBERS, THE ORANGE COUNTY REGISTER
The glass panes of the Crystal Cathedral in Garden Grove reflects the image of the Spire and Prayer Chapel built in 1990. LEONARD ORTIZ, THE ORANGE COUNTY REGISTER

1 of

1 of

User Agreement

Keep it civil and stay on topic. No profanity, vulgarity, racial
slurs or personal attacks. People who harass others or joke about
tragedies will be blocked. By posting your comment, you agree to
allow Orange County Register Communications, Inc. the right to
republish your name and comment in additional Register publications
without any notification or payment.